File Income Tax Returns in Pakistan With Ways Tax

Documents Required for Income Tax Return Filing

To register online for filing an income tax return, individuals need the following documents and prerequisites.

Note that online registration is available only for individuals, not for Associations of Persons (AOP) or companies:

1. Essential Requirements:
   • Access to the User Guide for instructions.
   • A computer, scanner, and internet connection.
   • A cell phone with a SIM registered under the individual’s CNIC.
   • A personal email address.
2. Scanned Documents (PDF format):
   • Personal bank account certificate.
   • Evidence of tenancy/ownership for business premises (if applicable).
   • Utility bill for business premises, paid within the last 3 months (if applicable).

Online registration can be completed through the Iris portal.

Wealth Statement Reconciliation

Your wealth statement will only be successfully submitted if your income has surpassed or fallen short of your expenses and your worth has risen or reduced by the same amount from the previous year. You will not be able to file your income tax return if you do not reconcile your wealth statement. 

Income Tax Return for a Salaried Individual

For a salaried individual to effectively file their income tax return, they must fill out Declaration form 114(I). This form is available to those who solely get income from their salaries and other sources, where their salaries account for more than 50% of their total income. 

Taxpayer Registration Basics

• Who Can Register: Individuals, companies, associations of persons (AOP), and foreign nationals are considered registered once they e-enroll on the Federal Board of Revenue (FBR)’s Iris portal.
• E-Enrollment: Provides taxpayers with a National Tax Number (NTN) or Registration Number and password, allowing them access to the online tax system.
• NTN for Individuals: For individual taxpayers, their 13-digit Computerized National Identity Card (CNIC) number serves as their NTN or registration number.
• NTN for AOP and Companies: For businesses or associations, a 7-digit NTN is issued after completing the e-enrollment process.
• Access to Iris Portal: These credentials allow taxpayers to file income tax returns via the Iris portal, the only platform for online income tax filing.

Modification of Income Tax Registration

• Purpose of Modification: Income Tax Registration can be updated if there are any changes or omissions in the information, particulars, data, or documents related to a taxpayer’s registration.
• Filing for Modification: To initiate a change, the taxpayer must submit a modification form via the Iris portal.
• Commissioner’s Review: The Commissioner will review the modification request and may conduct further inquiries as necessary to decide whether to approve or deny the modification.
• Right to Appeal: If the modification request is denied, the taxpayer can submit a representation to the Chief Commissioner within thirty (30) days of the decision.
• Final Decision: The Chief Commissioner will assess the merits of the representation and make a final determination regarding the modification.

This process ensures that the taxpayer’s information remains accurate and up-to-date, reflecting any relevant changes in their circumstances.

Cancellation of Income Tax Registration

• Authority to Cancel: The Commissioner has the authority to cancel a taxpayer’s Income Tax Registration through a formal written order.
• Conditions for Cancellation:
  1. No Outstanding Liability: Before proceeding with cancellation, the Commissioner must ensure that there are no outstanding tax liabilities against the taxpayer.
  2. Verification of Records: All relevant information, particulars, data, or documents linked to the taxpayer’s registration must justify the cancellation.

This process ensures that the cancellation of registration is appropriate and based on verified information and cleared dues.

Change in Particulars of Registration

• Notification Requirement: If there is any change in the name, address, or other particulars listed on the registration certificate, the registered person must inform the relevant Regional Tax Office (RTO) using the prescribed form within 14 days of the change.
• Business Category Modification: A change in the business category is permitted only after the RTO verifies the manufacturing facility and confirms the taxpayer’s status as an industrial consumer with the electricity and gas distribution companies.

Changing Your Personal Details for Income Tax Registration

You can update your personal details in three main ways for filing your Income Tax Return:

1 Changing Information through Iris

Log into the Iris portal and file Registration Form 181 for modification. You can update the following:

• Mobile number
• E-mail
• Personal/Residential Address
• Business Address
• Addition of Business Branches
• Legal Representative under Section 87 of the Income Tax Ordinance, 2001
• Bank Account

2 Changing Information through FBR Helpline

You can also update specific details via the Federal Board of Revenue (FBR) helpline (phone or email). Information that can be updated includes:

• Name
• Date of Birth
• Gender
• Disability Status
• Senior Citizen Status

3 Changing Information by Visiting the Regional Tax Office (RTO)

For more complex changes, you need to visit the relevant RTO in person. Changes that require a visit include:

• Discontinuance of Business
• Jurisdiction for Income Tax Return Assessment
• Deregistration
• Updating CNIC Number
• Updating Pakistan Origin Card (POC)

You will need to bring the relevant documents to the RTO for these updates to be processed successfully.

Official Fee for Income Tax Return

There is no official fee for filing your income tax return through government portals such as Iris.

7 Benefits of Filing an Income Tax Return

Followings are the benefits of filing an income tax return;

1 Legal Compliance:

Filing income tax returns guarantee that you meet all legal obligations and avoid penalties and fines.

2 Claim Tax Refunds: 

If you have had too much tax deducted from your income, you may be eligible for refunds.

3 Proof of Income: 

Filled returns serve as formal proof of income, which is required for loan approvals, visa applications, and financial planning.

4 Avoid Audits and Penalties: 

Timely and accurate return filing reduces the possibility of audits and further investigation by tax authorities.

5 Carry Forward Losses: 

You can use capital or business losses that you file returns for to reduce your future taxable income.

6 Eligibility for Government Tenders:

Your income tax return serves as proof of tax compliance for many government contracts and tenders.

7 Easier Loan Approvals: 

Banks often request tax returns as part of the loan application process, making it easier to secure loans